CHARLOTTE – Mergers and acquisitions are happening at a “record-breaking rate,” according to a new analysis conducted by Charlotte-based DecisionPoint Advisors.
In the second quarter, the firm found, 988 technology deals were announced globally, leading to total public deal value of $266 billion and a median revenue multiple of 11.8x.
Globally, the mergers and acquisitions market saw $1.5 trillion of deal value announced in the second quarter, according to the analysis from DecisionPoint. That deal value amount is a new record, compared to all prior second quarter results in the company’s database.
“Competition between strategic firms and financial buyers for quality targets remains fierce,” wrote Tom Wilson, Jr., a managing partner of DecisionPoint, in an email to WRAL TechWire. One result, noted Wilson, is that the multiples for technology companies again increased, now up nearly 51% compared to the prior quarter.
“Between a steady global reopening into a post-COVID world, a low-interest-rate environment, and uncertainty surrounding future US Tax legislation, it is likely M&A activity will remain close to these record numbers for the foreseeable future as buyers seek to capitalize on ripe market conditions,” Wilson stated.
